Anaheim, CA-based specialty retailer
Pacific Sunwear of California Inc.
) reported its third-quarter fiscal 2013 results wherein it
incurred a loss of 5 cents a share, wider than a loss of 2 cents
in the comparable prior-year period, on an adjusted basis.
The quarterly loss came in line with the Zacks Consensus
Earnings were majorly impacted by the 53rd week calendar shift,
in the absence of which the company would have reported
break-even results compared to last year.
On a reported basis, the company posted earnings of 23 cents a
share from continuing operations, significantly up from 5 cents
delivered in the year-ago quarter.
Net sales dropped 4.1% to $206.6 million, almost in line with the
Zacks Consensus Estimate of $206 million. Sales were also
primarily impacted by the calendar shift.
However, same-store sales for the quarter inched up 1%,
representing the 7th consecutive quarter of positive same store
sales. For November, it rose 6% on the back of robust Black
Friday sales, strong emerging brands and an exclusive range of
Adjusted gross profit slipped 14.2% to $51.9 million with the
gross margin contracting 300 basis points to 25.1%.
Operating loss was $2.2 million compared to an operating profit
of $1.1 million in the prior-year quarter.
Adjusted selling, general and administrative (SG&A) expenses
in the reported quarter were approximately $53.9 million, down
9.1%, year on year.
Pacific Sunwear ended the quarter with cash and cash equivalents
of $19.9 million, long-term debt of $80.7 million, and
shareholders' equity of $40.3 million.
During the third quarter, this sports and fashion retailer opened
4 new stores and closed 13, taking the total store count to 635
(comprising 517 PacSun Core stores and 118 PacSun Outlet stores)
, spanning about 2.5 million square foot.
In the fourth quarter of fiscal 2013, the company expects loss
between 12-17 cents, taking into account the effects of calendar
shift. Management projects revenue between $216 million and
Moreover, management forecasts same-store sales to range between
1-5%, gross margin to contract further and lie somewhere between
21-24% and SG&A to come in the range of $61-63 million, in
the coming quarter.
Other Stocks to Consider
Pacific Sunwear, one of the leading seller of clothing, footwear
and accessories, currently holds a Zacks Rank #4 (Sell). Other
better-ranked stocks in the related industry include
Fossil Group, Inc.
Deckers Outdoor Corp.
ANTA Sports Products Ltd
), all carrying a Zacks Rank #2 (Buy).
ANTA SPORTS PRD (ANPDF): Get Free Report
DECKERS OUTDOOR (DECK): Free Stock Analysis
FOSSIL GRP INC (FOSL): Free Stock Analysis
PAC SUNWEAR CAL (PSUN): Free Stock Analysis
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